With the peak oil crisis looming closely over our American economy, government and corporate organizations have turned toward corn ethanol as as alternative to our petroleum dependency. Drastically increasing America's corn demand creates trickle down side-effects in various domestic and worldwide sectors manifesting as a global impact. Primarily, increasing corn demand has encouraged agriculture farmers to replace other crops (wheat, soy, etc) with the more profitable, corn crop. Consequently, corn and other food prices have risen, decreasing national Food Aids and increasing global hunger.
The cartoon is a satirical criticism of governmental and societal acceptance of corn ethanol as a sustainable energy solution. Government policy acts and subsidies alter the free market to make corn ethanol a much more attractive energy solution than it actually is. In fact, from the amount of CO2 released and the petroleum required in production, this biofuel is actually a net decrease energy solution. The United States government has pumped so much money into corn energy that without subsidies it would be economically unsustainable as well. More goes in than comes out, but as the little piggy says it's greener green house emissions, right?
Negative Net Energy and Ecological Impact
Corn ethanol is 42% coal and 32% foreign fossil and 22% corn
CO2 emissions from burning coal are greater than gasoline.(biofuel study)
Ethanol has only 2/3 the energy of gasoline.... It takes 6 gallons of ethanol to save the energy in 2 gallons of gasoline (Zfacts.com )
Production Costs are not included in net energy calculations 1700 gallons of water are used to produce a gallon of ethanol. Corn uses more nitrogen fertilizer, more insecticides, more herbicides than any other crop.(Shiva Vandana )
Production Facility Costs...not included in net energy calculations
More ethanol plants produced leads to great deforestation "by 2022 biofuel plants could destroy 98% of Indonesia Rainforests....the United Nations Food and Agriculture Organization estimates 20-30% of greenhouse gases released each year comes from deforestation" (Shiva Vandana )
Studies have suggested that high blends of ethanol may pose a greater risk to public health than gasoline due to increased emissions of carbon sulfur and small particulate matter during automobile combustion. This may adversely affect our already highly asthmatic population potentially leading to an increase in asthma cases and severity.
Corn is Food! World-wide Effects (Hunger) On February 28, the Brazilian Landless Workers Movement released a statement noting that "the expansion of the production of biofuels aggravates hunger in the world. We cannot maintain our tanks full while stomachs go empty." (Shiva Vandana )
After 2007 wheat prices have risen more than 35 percent since the 2006 harvest, while corn prices have increased nearly 28 percent. (Rising food Prices )
U.S. ethanol production from corn is projected to climb to 14.7 billion gallons by 2011.
Corn acreage is projected to increase to almost 94 million acres at $3.40 per bushel while soybean acresare projected to decline to about 69 million acres priced at over $7.00 per bushel (biofuel)
Between 2004 and 2006, global food aid donations averaged around 7.5 million tons per year.
With rising prices....By 2016 the food gap increases 8 percent to 27.2 million tons as global food aid will fall under 5 million tons. (Rising food Prices)
Higher feed costs increase by more than 1.1% over baseline levels. Beef, pork, and poultry prices would rise by more than 4% and egg prices would rise by about 7%. (Biofuel Study)
Archer Daniels Midlands) political lobbying
File:ADM-logo.svg
Gov't subsidies have made corn ethanol economically sustainable masking the real environmental inefficiencies and monopolizing all federal funds allocated for sustainable energy sources and wildlife and resource preservation.
ADM owns 20% of US production capacity
ADM can produce 4 times VeraSun, their closest competitor, can. The company controls 1.1 billion gallons of ethanol production (Zfacts.com )
ADM pushed for 54 cent per gallon tax on all imported ethanol - to create a preference for domestic corn use, largely affected Brazilian economy (and other exporters) (US News )
ADM worked for an additional 51 cent tax exemption from federal excise tax on gasoline on all gallons of gasoline mixed with ethanol (US News )
In 2006, ADM is by far the biggest beneficiary of more than $2 billion in government subsidies(Zfacts.com)
2006 was the latest year I could find numbers for yet I'm sure that has increased significantly since 2007.
ADM and government politicians are pushing for E-85 (or 85% ethanol mix) fuel cars as opposed to current E-10 levels.
If E-85 corn-based ethanol were to become the standard ethanol production would increase to about 29 billion gallons per year while
U.S. corn acreage increases to over 112 million acres. (Biofuel Study )
Cal Dooley, president of the Grocery Manufacturers Association
says "It ought to be dictated by market forces... every bushel of corn treated the same. You would allow the market to determine how corn would be utilized. Right now, it's not a level playing field." (US News )
Energy Independence Act of 2007...pushed by ADM
The Act requires more corn use until 15 billion gallons are reached in 2015 (ewg)
Corn Ethanol is hogging sustainable energy government funding.
We need a sustainable energy portfolio, corn ethanol cannot replace our oil dependency. 20% of US corn spent on producing 5 billion gallons of ethanol only substitutes 1% of total oil use. If 100% of corn was used, only 7% of the total oil would be substituted. (Shiva Vandana )
Yet it is receiving funding as if it were our only solution... Ethanol industry received $3 billion in tax credits (64% of Federal Renewable Energy Dollars) in 2007
more than four times available to companies trying to expand solar, wind and geothermal power (EWG)
In 2010 $5 billion was spent on corn ethanol. (Environmental Working Group Report )
The Act creates a paradox since it intensifies ethanol production while stealing funding from US department of agriculture. A double threat to soil, water and wildlife resources that the dept. of agriculture works to protect.
75% of renewable energy tax credit if on corn ethanol
corn-based ethanol has accounted for fully three-quarters of the tax benefits and two-thirds of all federal subsidies allotted for renewable energy sources in 2007. (Environmental Working Group Report )
Alternative...
Other forms of sustainable energy are in early stages of development yet they lack the proper government funding (both monetary and organizational support). The United States government has created a profitable and economically sustainable system for corn ethanol production. Yet the chosen solution of corn ethanol has been proven incapable to deliver fuel at levels necessary for our current consumption practices.
On a per-gallon basis, GREET (The Greenhouse gases, Regulated Emissionsand Energy use in Transportation) shows that corn ethanolreduces GHG emissions by 18% to 29%; cellulosic ethanol offers an even greater benefit, with an 85% reduction in GHG emissions **(Argonne Natural Lab Study)**
It's frustrating that there are other, more promising energy alternatives out there completely unexplored due to insufficient funding and lack of a governmental support. It just takes one particularly large and powerful corporation to dictate the way the entire United States and consequently, the world will go about solving the energy crisis. Corn Ethanol is not a sustainable, long term solution but rather it is a short term scheme to optimize ADM's income statement. I question the validity of and organizational sustainability of Government bodies when they continue to act in a corporate, for profit manner rather than as protection for the people.
*Ethanol’s Federal Subsidy Grab Leaves Little For Solar, Wind And Geothermal Energy. Rep. Environmental Working Group, Jan. 2009. Web. 17 Mar. 2010. <http://www.ewg.org/node/27498>.
Rosen, Stacey, and Shahla Shapouri. "Rising Food Prices Intensify Food Insecurity in Developing Nations."Amber Waves 6.1 (2008): 16-21. EpscoHost. Economic Research Service/USDA, Feb. 2008. Web. 16 Mar. 2009. <http://www.ers.usda.gov/AmberWaves/February08/PDF/RisingFood.pdf>
*Tokgoz, Simla. Emerging Biofuels: Outlook of Effects on US Grain, Oilseed and Livestock Markets. Rep. Iowa State University, 2007. Web. 17 Mar. 2010. <http://ideas.repec.org/p/isu/genres/12812.html>.
"USDA's New Ethanol Energy Ratio." Web Log post. Zfacts.com. 22 Nov. 2008. Web. 18 Mar. 2009. <http://zfacts.com/p/83.html>
With the peak oil crisis looming closely over our American economy, government and corporate organizations have turned toward corn ethanol as as alternative to our petroleum dependency. Drastically increasing America's corn demand creates trickle down side-effects in various domestic and worldwide sectors manifesting as a global impact. Primarily, increasing corn demand has encouraged agriculture farmers to replace other crops (wheat, soy, etc) with the more profitable, corn crop. Consequently, corn and other food prices have risen, decreasing national Food Aids and increasing global hunger.
The cartoon is a satirical criticism of governmental and societal acceptance of corn ethanol as a sustainable energy solution. Government policy acts and subsidies alter the free market to make corn ethanol a much more attractive energy solution than it actually is. In fact, from the amount of CO2 released and the petroleum required in production, this biofuel is actually a net decrease energy solution. The United States government has pumped so much money into corn energy that without subsidies it would be economically unsustainable as well. More goes in than comes out, but as the little piggy says it's greener green house emissions, right?
Negative Net Energy and Ecological Impact
Corn ethanol is 42% coal and 32% foreign fossil and 22% corn
CO2 emissions from burning coal are greater than gasoline. (biofuel study)
Ethanol has only 2/3 the energy of gasoline.... It takes 6 gallons of ethanol to save the energy in 2 gallons of gasoline (Zfacts.com )
Production Costs are not included in net energy calculations
1700 gallons of water are used to produce a gallon of ethanol. Corn uses more nitrogen fertilizer, more insecticides, more herbicides than any other crop. (Shiva Vandana )
Production Facility Costs...not included in net energy calculations
More ethanol plants produced leads to great deforestation "by 2022 biofuel plants could destroy 98% of Indonesia Rainforests....the United Nations Food and Agriculture Organization estimates 20-30% of greenhouse gases released each year comes from deforestation" (Shiva Vandana )
Studies have suggested that high blends of ethanol may pose a greater risk to public health than gasoline due to increased emissions of carbon sulfur and small particulate matter during automobile combustion. This may adversely affect our already highly asthmatic population potentially leading to an increase in asthma cases and severity.
Corn is Food! World-wide Effects (Hunger)
On February 28, the Brazilian Landless Workers Movement released a statement noting that "the expansion of the production of biofuels aggravates hunger in the world. We cannot maintain our tanks full while stomachs go empty." (Shiva Vandana )
After 2007 wheat prices have risen more than 35 percent since the 2006 harvest, while corn prices have increased nearly 28 percent. (Rising food Prices )
U.S. ethanol production from corn is projected to climb to 14.7 billion gallons by 2011.
Corn acreage is projected to increase to almost 94 million acres at $3.40 per bushel while soybean acres are projected to decline to about 69 million acres priced at over $7.00 per bushel (biofuel)
Between 2004 and 2006, global food aid donations averaged around 7.5 million tons per year.
With rising prices....By 2016 the food gap increases 8 percent to 27.2 million tons as global food aid will fall under 5 million tons. (Rising food Prices)
Higher feed costs increase by more than 1.1% over baseline levels. Beef, pork, and poultry prices would rise by more than 4% and egg prices would rise by about 7%. (Biofuel Study)
Archer Daniels Midlands) political lobbying
Gov't subsidies have made corn ethanol economically sustainable masking the real environmental inefficiencies and monopolizing all federal funds allocated for sustainable energy sources and wildlife and resource preservation.
ADM owns 20% of US production capacity
ADM can produce 4 times VeraSun, their closest competitor, can.
The company controls 1.1 billion gallons of ethanol production (Zfacts.com )
ADM pushed for 54 cent per gallon tax on all imported ethanol - to create a preference for domestic corn use, largely affected Brazilian economy (and other exporters) (US News )
ADM worked for an additional 51 cent tax exemption from federal excise tax on gasoline on all gallons of gasoline mixed with ethanol (US News )
In 2006, ADM is by far the biggest beneficiary of more than $2 billion in government subsidies (Zfacts.com)
2006 was the latest year I could find numbers for yet I'm sure that has increased significantly since 2007.
ADM and government politicians are pushing for E-85 (or 85% ethanol mix) fuel cars as opposed to current E-10 levels.
If E-85 corn-based ethanol were to become the standard ethanol production would increase to about 29 billion gallons per year while
U.S. corn acreage increases to over 112 million acres. (Biofuel Study )
Cal Dooley, president of the Grocery Manufacturers Association
says " It ought to be dictated by market forces... every bushel of corn treated the same. You would allow the market to determine how corn would be utilized. Right now, it's not a level playing field." (US News )
Energy Independence Act of 2007...pushed by ADM
The Act requires more corn use until 15 billion gallons are reached in 2015 (ewg)
Corn Ethanol is hogging sustainable energy government funding.
We need a sustainable energy portfolio, corn ethanol cannot replace our oil dependency.
20% of US corn spent on producing 5 billion gallons of ethanol only substitutes 1% of total oil use. If 100% of corn was used, only 7% of the total oil would be substituted. (Shiva Vandana )
Yet it is receiving funding as if it were our only solution...
Ethanol industry received $3 billion in tax credits (64% of Federal Renewable Energy Dollars) in 2007
more than four times available to companies trying to expand solar, wind and geothermal power (EWG)
In 2010 $5 billion was spent on corn ethanol. (Environmental Working Group Report )
The Act creates a paradox since it intensifies ethanol production while stealing funding from US department of agriculture. A double threat to soil, water and wildlife resources that the dept. of agriculture works to protect.
75% of renewable energy tax credit if on corn ethanol
corn-based ethanol has accounted for fully three-quarters of the tax benefits and two-thirds of all federal subsidies allotted for renewable energy sources in 2007. (Environmental Working Group Report )
Alternative...
Other forms of sustainable energy are in early stages of development yet they lack the proper government funding (both monetary and organizational support). The United States government has created a profitable and economically sustainable system for corn ethanol production. Yet the chosen solution of corn ethanol has been proven incapable to deliver fuel at levels necessary for our current consumption practices.
On a per-gallon basis, GREET (The Greenhouse gases, Regulated Emissionsand Energy use in Transportation) shows that corn ethanolreduces GHG emissions by 18% to 29%; cellulosic ethanol offers an even greater benefit, with an 85% reduction in GHG emissions **(Argonne Natural Lab Study)**
It's frustrating that there are other, more promising energy alternatives out there completely unexplored due to insufficient funding and lack of a governmental support. It just takes one particularly large and powerful corporation to dictate the way the entire United States and consequently, the world will go about solving the energy crisis. Corn Ethanol is not a sustainable, long term solution but rather it is a short term scheme to optimize ADM's income statement. I question the validity of and organizational sustainability of Government bodies when they continue to act in a corporate, for profit manner rather than as protection for the people.
Resources
Bandyk, Matthew. "Subsidies and High Crop Prices." US News & World Report. 24 Jan. 2008. Web. 17 Mar. 2010. <http://www.usnews.com/money/business-economy/articles/2008/01/24/subsidies-and-high-crop-prices.html>.
*Ethanol’s Federal Subsidy Grab Leaves Little For Solar, Wind And Geothermal Energy. Rep. Environmental Working Group, Jan. 2009. Web. 17 Mar. 2010. <http://www.ewg.org/node/27498>.
Rosen, Stacey, and Shahla Shapouri. "Rising Food Prices Intensify Food Insecurity in Developing Nations." Amber Waves 6.1 (2008): 16-21. EpscoHost. Economic Research Service/USDA, Feb. 2008. Web. 16 Mar. 2009. <http://www.ers.usda.gov/AmberWaves/February08/PDF/RisingFood.pdf>
*Tokgoz, Simla. Emerging Biofuels: Outlook of Effects on US Grain, Oilseed and Livestock Markets. Rep. Iowa State University, 2007. Web. 17 Mar. 2010. <http://ideas.repec.org/p/isu/genres/12812.html>.
"USDA's New Ethanol Energy Ratio." Web Log post. Zfacts.com. 22 Nov. 2008. Web. 18 Mar. 2009. <http://zfacts.com/p/83.html>
Vandava, Shiva. Food, Forests and Fuel: From False to Real Solutions for Climate Change. Z-Space. Blog. December 13, 2007. http://www.zcommunications.org/food-forests-and-fuel-from-false-to-real-solutions-for-the-climate-change-by-vandana2-shiva
*Wang, PhD., Michael. "Ethanol: the Complete." Argonne National Laboratory’s Technical Services Division (2005): 1-3. EbscoHost.
*Peer Reviewed